Winslow Corporation reported stockholders' equity on December 31of the prior year as follows:
Common stock, $5 par value, 1,000,000 shares authorized, 500,000shares issued
$2,500,000
Paid-in capital in excess of par, common stock
1,000,000
Retained earnings
3,140,000
The following selected transactions occurred during the currentyear:
Jan 17
Retained Earnings
400,000
Common Dividend Payable
400,000
Feb 5
Common Dividend Payable
400,000
Cash
400,000
Feb 28
Retained Earnings
300,000
Common Stock Dividend Distributable
100,000
Paid-In Capital in Excess of Par Value
200,000
March 14
Common Stock Dividend Distributable
100,000
Common Stock, $5 par value
100,000
March 25
Memo â 2 for 1 stock split, Change the title
Of the Common Stock account to reflect
The new par value of $2.50
March 31
Income Summary
600,000
Retained Earnings
600,000
Using the schedule on the template, record the abovetransactions in the proper columns and calculate the endingbalances for each item.
Prepare a Stockholderâs Equity section of the Balance Sheet, ingood form, as of December 31 of the current year.
Winslow Corporation reported stockholders' equity on December 31of the prior year as follows:
Common stock, $5 par value, 1,000,000 shares authorized, 500,000shares issued | $2,500,000 |
Paid-in capital in excess of par, common stock | 1,000,000 |
Retained earnings | 3,140,000 |
The following selected transactions occurred during the currentyear:
Jan 17 | Retained Earnings | 400,000 | |
Common Dividend Payable | 400,000 | ||
Feb 5 | Common Dividend Payable | 400,000 | |
Cash | 400,000 | ||
Feb 28 | Retained Earnings | 300,000 | |
Common Stock Dividend Distributable | 100,000 | ||
Paid-In Capital in Excess of Par Value | 200,000 | ||
March 14 | Common Stock Dividend Distributable | 100,000 | |
Common Stock, $5 par value | 100,000 | ||
March 25 | Memo â 2 for 1 stock split, Change the title | ||
Of the Common Stock account to reflect | |||
The new par value of $2.50 | |||
March 31 | Income Summary | 600,000 | |
Retained Earnings | 600,000 |
Using the schedule on the template, record the abovetransactions in the proper columns and calculate the endingbalances for each item.
Prepare a Stockholderâs Equity section of the Balance Sheet, ingood form, as of December 31 of the current year.
Related questions
1. The effect of a stock dividend is to
Question 17 options:
change the composition of stockholders' equity. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
increase the book value per share of common stock. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
decrease total assets and stockholders' equity. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| decrease total assets and total liabilities 2. Regular dividends are declared out of:
3. Solaris, Inc. has 2,000 shares of 5%, $10 par value,cumulative preferred stock and 50,000 shares of $1 par value commonstock outstanding at December 31, 2014. What is the annual dividendon the preferred stock? Question 20 options:
Identify the effect the declaration and distribution of a stockdividend has on the par value per share. Question 24 options:
|
The stockholders' equity of Howell Company at July 31, 2012 ispresented below:
Common stock, par value $20, authorized 400,000 shares; | ||
issued and outstanding 160,000 shares | $3,200,000 | |
Paid-in capital in excess of par | 160,000 | |
Retained earnings | 650,000 | |
$4,010,000 | ||
On August 1, 2012, the board of directors of Howell declared a10% stock dividend on common stock, to be distributed on September15th. The market price of Howell's common stock was $35 on August1, 2012, and $38 on September 15, 2012. What is the amount of thedebit to retained earnings as a result of the declaration anddistribution of this stock dividend?
[The following information applies to the questions displayed below.]
The equity sections from Atticus Groupâs 2016 and 2017 year-end balance sheets follow.
| Stockholdersâ Equity (December 31, 2016) | ||
| Common stockâ$5 par value, 100,000 shares authorized, 35,000 shares issued and outstanding | $ | 175,000 |
| Paid-in capital in excess of par value, common stock | 135,000 | |
| Retained earnings | 340,000 | |
| Total stockholdersâ equity | $ | 650,000 |
| Stockholdersâ Equity (December 31, 2017) | |||
| Common stockâ$5 par value, 100,000 shares authorized, 41,200 shares issued, 4,000 shares in treasury | $ | 206,000 | |
| Paid-in capital in excess of par value, common stock | 190,800 | ||
| Retained earnings ($30,000 restricted by treasury stock) | 400,000 | ||
| 796,800 | |||
| Less cost of treasury stock | (30,000 | ) | |
| Total stockholdersâ equity | $ | 766,800 | |
The following transactions and events affected its equity during year 2017.
| Jan. | 5 | Declared a $0.50 per share cash dividend, date of record January 10. | ||
| Mar. | 20 | Purchased treasury stock for cash. | ||
| Apr. | 5 | Declared a $0.50 per share cash dividend, date of record April 10. | ||
| July | 5 | Declared a $0.50 per share cash dividend, date of record July 10. | ||
| July | 31 | Declared a 20% stock dividend when the stockâs market value was $14 per share. | ||
| Aug. | 14 | Issued the stock dividend that was declared on July 31. | ||
| Oct. | 5 | Declared a $0.50 per share cash dividend, date of record October 10. |
Problem 13-4A Part 1
Required:
1. How many common shares are outstanding on each cash dividend date?
The following information applies to the questions displayed below.]
The equity sections from Atticus Groupâs 2016 and 2017 year-end balance sheets follow.
| Stockholdersâ Equity (December 31, 2016) | ||
| Common stockâ$5 par value, 100,000 shares authorized, 35,000 shares issued and outstanding | $ | 175,000 |
| Paid-in capital in excess of par value, common stock | 135,000 | |
| Retained earnings | 340,000 | |
| Total stockholdersâ equity | $ | 650,000 |
| Stockholdersâ Equity (December 31, 2017) | |||
| Common stockâ$5 par value, 100,000 shares authorized, 41,200 shares issued, 4,000 shares in treasury | $ | 206,000 | |
| Paid-in capital in excess of par value, common stock | 190,800 | ||
| Retained earnings ($30,000 restricted by treasury stock) | 400,000 | ||
| 796,800 | |||
| Less cost of treasury stock | (30,000 | ) | |
| Total stockholdersâ equity | $ | 766,800 | |
The following transactions and events affected its equity during year 2017.
| Jan. | 5 | Declared a $0.50 per share cash dividend, date of record January 10. | ||
| Mar. | 20 | Purchased treasury stock for cash. | ||
| Apr. | 5 | Declared a $0.50 per share cash dividend, date of record April 10. | ||
| July | 5 | Declared a $0.50 per share cash dividend, date of record July 10. | ||
| July | 31 | Declared a 20% stock dividend when the stockâs market value was $14 per share. | ||
| Aug. | 14 | Issued the stock dividend that was declared on July 31. | ||
| Oct. | 5 | Declared a $0.50 per share cash dividend, date of record October 10. |
Problem 13-4A Part 2
2. What is the total dollar amount for each of the four cash dividends?
